The economy is feeling the effects of the corona pandemic, war and shortages.
(Photo: dpa)
Berlin, Nuremberg Despite the energy crisis, high inflation and material shortages, the number of people in employment in Germany rose to a record level last year. It increased by 589,000 or 1.3 percent to around 45.6 million, as the Federal Statistical Office announced on Monday. “That was more than ever since German unification in 1990,” it said.
The previous peak of 2019 of 45.3 million employed persons was thus exceeded by around 292,000. In 2020, the Corona crisis ended the 14-year rise in the number of people in employment, leading to a decline of 362,000, followed by a slight increase of 65,000 in 2021.
“One reason for the increase in employment in 2022 was the immigration of foreign workers,” the statisticians explained. “In addition, there was an increased labor force participation among the domestic population.”
Accordingly, these two growth stimuli outweighed the dampening effects of demographic change on the labor market, which is likely to lead to a significant decline in the working-age population in the medium term.
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According to the information, 93 percent of the increase in employment goes back to the service providers. There was an increase of 548,000 people or 1.6 percent in 2022. The largest absolute increase was recorded in the area of public service providers, education and health with 189,000.
Losses from previous Corona years
“This industry had already increased its workforce by a similar amount during the Corona years of 2020 and 2021,” it said. The trade, transport and hospitality sectors also employed more people with 180,000 more people, as did corporate service providers with 88,000 more people.
Unemployment cost almost 68 billion euros in 2021.
(Photo: imago images/Future Image)
However, these two sectors were not able to make up for their losses from the two previous Corona years. In the manufacturing industry (excluding construction), on the other hand, the number of people in employment rose by only 31,000 or 0.4 percent to around 8.1 million people.
>> Read here: Unemployment cost almost 68 billion euros in 2021
The Kiel Institute for the World Economy (IfW) assumes that employment will peak this year. The number is expected to drop again in 2024. “Companies’ demand for labor is primarily being dampened by the economic consequences of the energy crisis, but the sharp increase in the minimum wage to EUR 12 is also likely to have negative employment effects,” it said.
More: Germany is stuck in stagflation